Planetvu Chooses Internap and VitalStream to Deliver Global IPTV

Business Wire, Feb 12, 2007

Combined Technologies Enable Broadcast Quality of World's First Live TV Service Over the Internet

ATLANTA & COSTA MESA, Calif. -- Internap Network Services Corporation (NASDAQ:INAP), and VitalStream Holdings, Inc. (NASDAQ:VSTH) today announced that Planetvu Corporation, a pioneer in the development and delivery of multi-channel television services over Internet protocol (IPTV), has selected a combination of the companies' technologies to deliver live on-demand TV programming across the public Internet.

Using Internap's premium IP connectivity, colocation and route optimization appliances, combined with VitalStream's content delivery network (CDN), Planetvu has met the challenge of distributing broadcast quality content to over 205 million unique broadband households in over 120 countries. Collectively, the technologies provide an end-to-end solution that delivers fast, reliable access to Planetvu's IPTV service from anywhere in the world.

Planetvu's global footprint utilizes public networks, so acquiring live television signals into its platform as well as distributing content to customers brings unique physical challenges. Delivering a broadcast quality picture over the public Internet required specific expertise ultimately delivered by the combined solution of Internap and VitalStream.

"As a company with an aggressive vision for growth, we need technology partners willing to work with us to support our long-term development goals," said Stuart Ross, president and chief executive officer of Planetvu. "With Internap and VitalStream, we can confidently increase the number of subscribers while providing innovative services to our current and new customers."

Ross added, "After unsuccessful attempts by nearly a dozen other companies, the results from implementing the Internap solution were both effective and dramatic. The technology overcame packet loss and network congestion, which resulted in a superb quality TV signal. Since then, our customer satisfaction has significantly improved thanks to the network's high performance."

Once inside the Internap robust data center, VitalStream delivers Planetvu's live video using the Windows Media platform. The VitalStream content delivery network architecture reliably delivers broadcast quality content to Planetvu's large global audience regardless of location, size or device. VitalStream's MediaConsole[R] application allows Planetvu to easily acquire business intelligence and other important metrics such as audience size, location and viewing time needed to assess ROI.

"The successful delivery of Planetvu's live video affirms the power of Internap and VitalStream's joint value proposition," said James P. DeBlasio, chief executive officer for Internap. "Together, we're excited about the possibilities of helping our customers compete on a global scale by offering one of the industry's most comprehensive portfolios for Internet business, particularly for rich media delivery."

"Our goal was to provide an end-to-end solution that helps Planetvu deliver reliable, high quality video to its multi-national customer base," said Philip N. Kaplan, chief operating officer and founder of VitalStream. "With VitalStream and Internap taking care of the underlying technology needs of the platform, as well as the complex requirements for live video, Planetvu can now concentrate on growing its business by offering a differentiated entertainment service."

Prior to deploying the technologies, Planetvu found the industry unprepared to service the unique requirements of delivering live video over Internet Protocol, and the structure of other standard Service Level Agreements (SLAs) did not satisfy Planetvu's quality of service demands. With the Internap proactive SLA, PlanetVu has a 100% uptime guarantee.

A team of Internap network engineers configured its premise-based route optimization technology to accelerate Planetvu's point-to-point backhaul of signals from Dubai to New York City. With network speed being critical to application availability, Internap optimizes the performance of Planetvu's live video across 6,000 miles by overcoming the distance-induced limitations of various Internet protocols. Performance culprits such as latency and packet loss are mitigated to deliver content with LAN-like speed.

Internap and VitalStream have entered into a definitive agreement pursuant to which Internap will acquire all of the capital stock of VitalStream in exchange for the issuance of approximately 11.9 million shares of Internap's common stock. Internap and VitalStream will each hold special meetings of stockholders on February 20, 2007, for the purpose of approving the acquisition. The companies anticipate that the acquisition will close as soon as practicable after the stockholder meetings, subject to approvals by Internap and VitalStream stockholders and the satisfaction of other closing conditions. The information about the transaction in this release is neither a solicitation of a proxy, an offer to purchase nor a solicitation of an offer to sell shares of Internap's common stock. Any offer of securities will only be made pursuant to the Joint Proxy Statement/Prospectus on Form S-4 filed with the Securities and Exchange Commission ("SEC") by Internap and VitalStream, a copy of which is available without charge on the SEC's website at www.sec.gov. A free copy may also be obtained from Internap or VitalStream through their Investor Contacts listed below.